ARM (NASDAQ:ARM) Stock Price Down 6.5% – Here’s What Happened

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price dropped 6.5% during trading on Thursday. The company traded as low as $270.26 and last traded at $275.29. Approximately 6,063,281 shares traded hands during trading, a decline of 21% from the average daily volume of 7,662,422 shares. The stock had previously closed at $294.37.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a research note on Thursday, July 30th. Wells Fargo & Company lowered their price target on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. HSBC lowered ARM from a “buy” rating to a “hold” rating and lifted their price objective for the company from $255.00 to $315.00 in a research note on Tuesday, July 14th. Piper Sandler assumed coverage on ARM in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $320.00 target price on the stock. Finally, Susquehanna raised their target price on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Stock Performance

The company has a 50 day moving average of $268.93 and a 200 day moving average of $264.86. The stock has a market capitalization of $294.03 billion, a price-to-earnings ratio of 283.81, a P/E/G ratio of 8.97 and a beta of 3.78.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The business had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the business earned $0.35 earnings per share. The business’s revenue was up 22.4% compared to the same quarter last year. On average, equities analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Employees Provident Fund Board acquired a new position in ARM during the fourth quarter worth $120,241,000. Arrowstreet Capital Limited Partnership grew its holdings in ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares during the last quarter. Janus Henderson Group PLC purchased a new position in shares of ARM in the first quarter valued at $116,112,000. SG Americas Securities LLC raised its stake in shares of ARM by 265.6% during the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after buying an additional 705,459 shares during the last quarter. Finally, Hyperion Asset Management Ltd raised its stake in shares of ARM by 28.0% during the 4th quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after buying an additional 401,594 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.